New partnership lifts lid on MRO costs

CIPS has joined forces with RS Components, a global distributor of electrical and electronic components and tools, to help members understand the complexity behind maintenance, repair and overhaul (MRO) costs.

The partnership includes access to the RS Connected Thinking hub, which includes the document Complexity Conceals Potential Cost Savings, outlining ways to unravel MRO complexity.

These include involving all relevant stakeholders, analysing consumption data and tracking savings achieved.

Other subjects covered include the Distinct Nature of MRO Costs, which shows how indirect costs are often overlooked compared to their direct counterparts.

In another paper CIPS members are advised to put customers first, ahead of cost savings, because of the inherent risks and cost implications if things go wrong.

And the resources also feature an explanation of why e-procurement is a logical step for most organisations and what to consider when making the switch.

CIPS CEO David Noble said: "Complexity is the enemy of good procurement practice.

“As professionals become busier and the world of business more challenging, having straightforward, practical guidance is not only essential but can solve the perpetual procurement conundrum – how to spend well, act ethically, make a difference for my organisation.”

Noble said the partnership offers insight into the use of data to understand patterns of trends and associations and behavioural analytics, which would prove valuable to members moving towards strategic procurement and supply management.

“This is the key differentiator between a professional with their finger on the pulse and one who will soon find themselves lost in modern procurement,” he said.

Klaus Goeldenbot, industrial president at RS, said: “Our experience and knowledge can enable customers to optimise their suppliers and processes and help define cost-saving strategies to reduce the true cost of procurement, which is significantly more than simply the cost of products.”